Reasonable HSA fee? cheaper options?

[diehard1997]

Quote:

Originally Posted by 523HRR Our HSA is with Optum Bank for over 5 years now. No fees with minimum cash balance. Remainder can be invested in a nice selection of mutual funds, including several low-cost Vanguard index funds. Very user friendly.

+1

We've been with Optum for many years and have had great luck. The only negative is the account no longer automatically downloads transactions into Quicken.


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[LOL!]

As noted, HSA Bank has no fees if you put $5000 there earning 0.2% and then the rest at TDAmeritrade invested in Vanguard index ETFs (no commissions if you sign up for that which you definitely should).

So if you can earn 1% on putting the $5,000 elsewhere, lets call the fees 0.8% of $5,000 annually or $40 a year. If you go below $5,000, then that's $5.50 a month or $66 a year added. I know some folks feel they will earn that $66 by investing at TDAmeritrade. For myself, I just leave $5,000 in the savings account and reduce $5,000 in any other cash account. Wait a minute, I don't keep cash around, so I cannot reduce another account by $5K.

HSABank has downgraded their computers, their servers, their web site, their phone service, and their people, so you may not want to use them if you need to make any transactions with them.

[Daniel J]

I just opened an account with Optum as well. Vanguard Admiral MFs are available. Fees are on the low side for an HSA.

[MooreBonds]

Quote:

Originally Posted by LOL! So if you can earn 1% on putting the $5,000 elsewhere, lets call the fees 0.8% of $5,000 annually or $40 a year. If you go below $5,000, then that's $5.50 a month or $66 a year added. I know some folks feel they will earn that $66 by investing at TDAmeritrade. For myself, I just leave $5,000 in the savings account and reduce $5,000 in any other cash account. Wait a minute, I don't keep cash around, so I cannot reduce another account by $5K. HSABank has downgraded their computers, their servers, their web site, their phone service, and their people, so you may not want to use them if you need to make any transactions with them.

I've had an HSA at HSA Bank since the first year HSAs became available. While I did notice the changes over the past year, my only interaction with them is my annual contribution to my HSA Bank account (which I can do all on-line, with ACH debits from my checking account), and then transferring that money once it clears to my TD Ameritrade account.

I haven't had any problems or issues with them. Is their website perfect? Well, a little on the 'less than perfect' side at times...but, then again, Vanguard's website was MUCH more cumbersome for years (IMO), and V is a substantially bigger company. So you put up with some annoyances.

If I had to regularly withdraw money from HSA Bank, then there might be some different feelings if I found the process to be difficult....but that hasn't happened yet.

And I start each year off in January with only about $75 cash balance, with the remaining fully invested, since I can earn 6%+ on various investments (BDCs, preferreds) that more than pays for the extra fee for a sub-$5,000 balance.

[StikyBoots]

I have a HSA by Select Account. The fee is $1/mo and an additional $1.50/mo to invest any HSA funds over $1000 in a mediocre selection of funds through Schwab.

Also of interest to those keeping their HSA in cash, Select Account does not have FDIC insurance on the HSAs.

I might look into Fidelity for my own account to gain access to a wider selection of lower cost funds.

[explanade]

Quote:

Originally Posted by Daniel J I just opened an account with Optum as well. Vanguard Admiral MFs are available. Fees are on the low side for an HSA.

Dang, can you transfer HSA assets from one institution to another?

Or open a second HSA account and start future cannula contributions there?

[MBSC]

Quote:

Originally Posted by explanade Dang, can you transfer HSA assets from one institution to another?

Yes.
https://crewconnect.vanguard.com/tot...rollovers.html

Quote:

Can HSA balances be transferred to another administrator? Yes. There are two ways to move money from one HSA to another: Transfer. This option directs the existing HSA custodian to send the HSA balance (or a portion of the balance) to another HSA custodian. You can have multiple transfers during the year and not be subject to any taxes. Rollover. With this option, the HSA money is sent from the current custodian to you. In turn, you send the money to the new custodian. To avoid any tax consequences, you must complete the rollover within 60 days and report it to the IRS. You are permitted one rollover per year.

Quote:

Originally Posted by explanade Or open a second HSA account and start future cannula contributions there?

Yes, as long as your total contributions to both accounts do not exceed the annual maximum contribution. It's like having multiple IRA accounts.

[BooBoo]

Quote:

Originally Posted by Fermion Since we will be retiring this month, HR informed us that we are now responsible for our HSA fee ($3.95 per month at UMB bank). We have about 20k there, treating it like a Roth (pay all our medical out of pocket). So that is about 0.25% per year fee. Reasonable or is it possible to get cheaper?

I have about 25K at UMB and have retired and pay no fees ? May be a perk from Mega Corp ? I like their on-line tools.

[easysurfer]

Quote:

Originally Posted by walkinwood I use HSA Administrators, but am very frustrated by their web site. It is SLOW and so very unintuitive.

Just got an email that HSA Administrators is in the process of switching to a new custodian again. Of course, that means here we go again .

[zinger1457]

My HSA account is with Wells Fargo, they waive the monthly fee ($4.25) as long as your HSA account balance is over $5K.

[audreyh1]

Quote:

Originally Posted by easysurfer Just got an email that HSA Administrators is in the process of switching to a new custodian again. Of course, that means here we go again .

Same here. Don't know what to do yet.....

[explanade]

Quote:

Originally Posted by Daniel J I just opened an account with Optum as well. Vanguard Admiral MFs are available. Fees are on the low side for an HSA.

I'm only seeing these funds, which appear not to be Admiral class:

Health Savings Account (HSA) Mutual Funds - OptumBank.com

Also, is there a list of fees somewhere?

[explanade]

OK, they just have a different set of Admiral Share funds than HSA Administrators. Both HSA Administrations and Optum Bank have Wellington but then different types of Admiral funds as well as funds from other institutions.

Optum doesn't have an international fund it appears.

Here is their fee schedule:

HSA Fees - OptumBank.com

So $3 a month if you keep less than $5000 in a bank account. Your investment balance does NOT count towards that balance threshold.

So in effect, if you just contribute and maintain HSAs there, it's $36 a year vs. $45 at HSA Administrators.

I don't know if the various withdraw options are cheaper at one institution or another. Seems like they charge for ACH and checks and $2.50 for ATM transactions. Seems like it would add up, though I would do minimal withdrawals for awhile.

I thought about moving my HSA before the HSA Administrators changing their website again in September but since I've paid my annual fees, I might as well wait, instead of transferring now and paying Optum $3 a month. I don't see the point in maintaining a separate $5000 bank account in addition to an HSA with Optum to avoid the maintenance fee.

[teejayevans]

Optum does have Global Equity fund (VHGEX)


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[523HRR]

Quote:

Originally Posted by explanade I'm only seeing these funds, which appear not to be Admiral class: Health Savings Account (HSA) Mutual Funds - OptumBank.com

All of the Vanguard funds on this list for Optimum are Admiral Class except for VHGEX.